ERC clears Meralco’s P16.37-B capex plan filed nine years ago

THE Energy Regulatory Commission (ERC) has approved Manila Electric Co.’s (Meralco) P16.37-billion capital expenditure (capex) program filed nine years ago, allowing the utility to proceed with projects to expand and rehabilitate its distribution system, subject to cost review and verification.

In a decision dated April 30, the regulator authorized the implementation of the proposed capex program, which covers 100 projects under regulatory year 2018 aimed at addressing customer demand, resolving operational deficiencies, and ensuring compliance with service performance standards.

“After a thorough evaluation of all the evidence submitted, and appreciation of all the information gathered, the Commission finds that the implementation of the subject capex projects… will benefit its consumers, in accordance with its obligation to provide continuous, safe, reliable, secure, and efficient service for its consumers,” the regulator said.

The ERC said the approved projects will be subject to review and adjustment based on actual usage and verified costs.

Meralco withdrew its highest-cost project, a P2.43-billion advanced metering infrastructure expansion, in 2022.

The power distributor was also directed to pay the ERC a permit fee of P122.78 million.

Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

Amid higher power costs linked to global oil price pressures, the ERC earlier directed Meralco to accelerate the P19.96-billion refund to its customers.

The accelerated refund will be implemented over 12 months instead of the original 36-month schedule, resulting in an average refund rate of P0.2511 per kilowatt-hour.

Meralco is also awaiting the decision of the ERC on its proposed refund of over P9 billion following a true-up calculation for the lapsed period in 2025.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera